Inherited a House in Florida? Here’s What to Do Next

First Things First: Understanding Florida Probate

Before you can sell or do anything with the inherited property, you need to understand Florida’s probate process.

What is Probate?

Probate is the legal process of transferring property ownership after someone dies. In Florida, most estates go through probate unless specific estate planning was done.

Types of Florida Probate

1. Summary Administration (Simplified, Faster)

• For estates under $75,000 (excluding homestead property)
• OR if deceased has been gone 2+ years
• Takes 2-4 months
• Less expensive

2. Formal Administration (Standard Process)

• For estates over $75,000
• Takes 6-12 months (sometimes longer)
• More complex, requires attorney
• Court supervision required

3. Disposition Without Administration (Very Small Estates)

• Only for estates under $6,000
• Funeral expenses only

Step-by-Step: What to Do with Your Inherited Florida House

Tax Implications of Inherited Property in Florida

Federal Estate Tax

For 2026, the federal estate tax exemption is $13.61 million per person. Unless the entire estate is worth more than this, there’s no federal estate tax.

Translation: Most people don’t pay federal estate tax.

Capital Gains Tax (The Important One)

When you sell an inherited property, you may owe capital gains tax on the profit.

Here’s the good news: You get a “stepped-up basis.”

Property Taxes

You’re responsible for property taxes from the date of death forward. Check if they’re current—back taxes can add up!

Your 4 Options for an Inherited Florida House

Common Challenges with Inherited Houses

Challenge #1: Multiple Heirs

The Problem: Siblings or family members disagree on what to do with the property.

The Solution:

• Get a professional appraisal (objective value)
• Discuss everyone’s needs openly
• Consider selling and splitting proceeds (cleanest option)
• One heir can “buy out” the others

Challenge #2: Out-of-State Heir

The Problem: You live in another state and can’t easily manage the Florida property.

The Solution:

• Sell to a cash buyer (handles everything remotely)
• Hire local property manager if renting
• Work with Florida probate attorney who handles everything

Challenge #3: Property Needs Major Repairs

The Problem: Inherited house needs $20,000-$50,000+ in repairs you can’t afford.

The Solution:

• Sell as-is to a cash buyer (we handle repairs)
• Get a renovation loan (if you plan to keep/rent)
• List as “fixer-upper” with realtor at reduced price

Challenge #4: Mortgage or Liens on Property

The Problem: There’s still a mortgage, HELOC, or liens on the property.

The Solution:

• Sell the property—proceeds pay off the debt at closing
• If underwater (owe more than value), talk to lender about short sale
• Cash buyers can help negotiate lien releases

Challenge #5: Hoarder House or Extreme Clutter

The Problem: House is filled with decades of belongings, making it overwhelming.

The Solution:

• Sell to cash buyer who buys it with everything inside (we handle cleanout)
• Hire estate sale company
• Hire junk removal service ($500-$3,000)

Inherited House Timeline

Here’s what to expect:

Week 1-2:

• Secure property
• Contact probate attorney
• File probate documents

Month 1-3:

• Probate process begins
• Property assessment
• Decide keep/rent/sell

Month 4-6:

• Probate nearing completion (Summary Administration)
• OR ongoing for Formal Administration

Month 6-12:

• Title transferred to your name
• Can officially sell or rent

Why Selling to a Cash Buyer Makes Sense for Inherited Properties

Most heirs choose to sell inherited properties, and here’s why cash buyers are often the best option:

✅ No Repairs Needed

We buy houses in any condition. Don’t spend $30,000 fixing up a house you don’t want.

✅ Fast Process

Close in 7-30 days after probate completes. No waiting months for traditional buyers.

✅ No Agent Commissions

Save 6% ($18,000 on a $300k house). Every dollar goes to you and co-heirs.

✅ We Handle Probate Coordination

We work directly with your probate attorney to make the process smooth.

✅ Close on Your Timeline

Ready to close as soon as title transfers, or wait if you need more time.

✅ Split Proceeds Easily

Cash sale makes dividing money among multiple heirs simple and fast.

Frequently Asked Questions

Q: Do I have to pay the mortgage on an inherited house?

A: Technically, the estate owes the mortgage. If you want to keep the house, you’ll need to take over payments or pay it off. If selling, the mortgage gets paid from sale proceeds at closing.

Q: Can I sell before probate is complete?

A: You can’t transfer title until probate completes, but you can start the selling process and close immediately after. Cash buyers are great for this.

Q: What if there are multiple heirs and we disagree?

A: Get a professional appraisal for objective value. Selling and splitting proceeds is usually the fairest solution. If one heir wants to keep it, they can buy out the others at appraised value.

Q: Do I owe capital gains tax if I sell right away?

A: Probably not. Thanks to stepped-up basis, if you sell within a year at similar market value, there’s little to no capital gain.

Q: What if the house is worth less than the mortgage?

A: Talk to the lender about a short sale. Cash buyers can help negotiate this. You may also be able to walk away if you’re not on the mortgage.

Q: Can I rent it out during probate?

A: It depends. Ask your probate attorney. In some cases, you can with court approval, but it’s often not worth the complexity.